Guess how much Millennials and Gen Z will spend on rent before buying homes
The answer is at least 200K
With delayed home ownership come hefty rents.
The average millennial waits 12 years before buying their first house paying out a little more than $200,000 in rent in the process, according to an analysis from Zillow Group site HotPads. But, as previous reports note, the peak of the generation is beginning to buy homes, so, for landlords looking ahead, the next major wave of tenants will be members of Gen Z, people born between 1998 and 2016.
For the average Gen Z-er, they’ll wait about 11 years before buying into the housing market—they’re expected to become homeowners at a faster pace than their millennial predecessors, but their average rent expenses will come to an estimated grand total of nearly $230,000.
If Gen Z’s rental costs play out as predicted, they will set a historical record. By comparison, the average Baby Boomer paid $148,900 in rent before buying a home after about a decade. HotPads also expects that Gen Z will flock to rent in California-based cities.
The analysis adjusted for inflation and assumed people began paying rent at 20. [Business Insider] — Erin Hudson